Why Trump's Nuclear Deal With Saudi Arabia Could Be Good News for These 2 Uranium ETFs
President Trump's nuclear deal with Saudi Arabia is a sign of rising demand for uranium and nuclear energy.
Overview
On July 22, President Donald Trump announced a deal to allow Saudi Arabia to enrich uranium to use as fuel for civilian nuclear power plants. There's some controversy about the deal and Congress has not yet approved. Saudi Arabia and Iran are major rivals in the Middle East. Critics argue that giving nuclear capabilities (even for peaceful purposes) to Saudi Arabia could lead to higher military tensions and even a nuclear arms race in the region.
But aside from questions of geopolitics and foreign policy, this deal is important to investors for a different reason. Trump's deal with Saudi Arabia shows that many countries, including oil-rich nations like Saudi Arabia, are looking to expand their production of nuclear energy. This would be good news for companies that mine uranium and manufacture nuclear reactors.
Details
Two prominent nuclear energy and uranium mining exchange-traded funds (ETFs) might benefit from Saudi Arabia's nuclear deal and future growth of demand for nuclear power. Let's look at these two uranium stock ETFs and see if either fund could be a good buy.
Source
Originally published at www.fool.com.